Dentons advises the FIA on historic agreement relating to the promotion rights for the WRC and ERC rally championships

Paris-Dentons advised the Fédération Internationale de l'Automobile (FIA), the global governing body for motor sport and the federation of mobility organizations worldwide, on the tax structuring aspects of the agreement relating to the promotion rights for the FIA World Rally Championship (WRC) and the FIA European Rally Championship (ERC).

The transaction follows the acquisition of WRC Promoter GmbH by Cosmobilis, a French automotive technology and services platform, and Park Square Capital, a leading private credit investor. The agreement marks a major milestone for these championships, with the aim of bringing significant new investment into rallying, enhancing the fan experience, and supporting the global development of the discipline.

The FIA's approval of these new promoters was compulsory for the transaction to proceed. The sale process, which took place over a six-month period including an audit by the FIA, enabled the FIA to satisfy itself that Cosmobilis and Park Square Capital had the financial guarantees and skills to succeed Red Bull as promoter.

Dentons acted as tax counsel to the FIA on the structuring of its consent and the related contractual framework, with a view to preserving its French tax status as a non-profit association. The Firm also analyzed the French and international tax and VAT aspects of the transaction, as well as the promotion, licensing and sanctioning framework relating to the WRC and ERC rights, in line with the FIA's specific tax and governance requirements.

Paris-based Tax partner Gianluca Calisti, led Dentons' team, alongside associate Héloïse Virenque.

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